DEFENSE LOGISTICS AGENCY

 HEADQUARTERS

 8725 JOHN J. KINGMAN ROAD

 FORT BELVOIR, VIRGINIA 22060-6221

June 27, 2017

MEMORANDUM FOR SUPPLY DISCREPANCY REPORT (SDR) PROCESS REVIEW 

COMMITTEE (PRC) MEMBERS

SUBJECT: Approved Defense Logistics Management Standards (DLMS) Change (ADC) 

1260, New Supply Discrepancy Report (SDR) and Storage Quality Control Report 

(SQCR) Discrepancy Codes for Identification of Packaging, Preservation, and 

Storage Conditions Resulting in Corrosion (SDR/SQCR/Supply) 

We are forwarding the attached approved change to DLM 4000.25, Defense Logistics 

Management Standards, for implementation August 1, 2017.

Addressees may direct questions to DLMSSDR@dla.mil, Ms. Ellen Hilert, DOD SDR 

System Administrator, e-mail: ellen.hilert@dla.mil; or Mr. Ben Breen, SDR Alternate, e-mail 

benjamin.breen@dla.mil. All others must contact their Component designated Supply PRC 

representative or SDR PRC representative available at: 

http://www.dlmso.dla.mil/eLibrary/ServicePoints/allpoc.asp

 

HEIDI M. DAVEREDE

Program Manager 

Enterprise Business Standards Office

Attachment

As stated

cc: 

ODASD (SCI)
Attachment, ADC 1260

Page 1

Attachment to Approved DLMS Change (ADC) 1260

New Supply Discrepancy Report (SDR) and Storage Quality 

Control Report (SQCR) Discrepancy Codes for Identification of 

Packaging, Preservation, and Storage Conditions Resulting in 

Corrosion

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION:

a. Technical POC: Pamela Holmes, Army Aviation and Missile Command (AMCOM)

Packaging & Stock Readiness Branch, AMSAM-MSC-DP, Pamela.a.holmes.civ@mail.mil, 256-

876-8179 (DSN 746-8179)

b. Functional POC: Rosemarie (Rose) Wilder, AMCOM Packaging @Stock Readiness 

Branch, AMSAM-MSC-DP, Rosemarie.m.wilder.civ@mail.mil, 256-842-9130, (DSN 788-

9130)

2. FUNCTIONAL AREA:

a. Primary/Secondary Functional Area: Supply/Finance

b. Primary/Secondary Functional Process: Receipt/Distribution/Stock Readiness

3. REFERENCE: DLM 4000.25, Defense Logistics Management Standards (DLMS), Volume 

2, Supply Standards and Procedures, Chapter 17, Supply Discrepancy Reporting; Appendix 7.28, 

Supply Discrepancy Report Relevant Data Elements; and Appendix 7.29, Stock Readiness 

Relevant Data Elements

4. APPROVED CHANGE(S): Green highlighting identifies revisions subsequent to staffing.

a. Brief Overview of Change: Add SDR/SQCR discrepancy codes to identify item 

corrosion due to inadequate and/or incomplete packing or preservation, or improper storage 

conditions.

b. Background: 

(1) After installation of repair parts on an aircraft/vehicle, the Product Quality 

Deficiency Report (PQDR) process tracks corrosion related issues. This type of corrosion

usually is due to the materials or compounds used to build the part. The DOD also needs a way 

to track corrosion related discrepancies identified prior to the installation of these parts during 

maintenance. It is appropriate to establish additional discrepancy codes for use in SDRs and 

SQCRs because this type of discrepancy is due to improper and/or insufficient preservation, 

insufficient or improper packaging, or improper storage conditions. 

(2) Army Aviation and Missile Command (AMCOM) is deeply involved in 

trying to reduce the number of assets lost due to corrosion. The Army estimates losing $2B in 

parts annually due to corrosion prior to the installation of parts. An Army Regulation (AR) 5-5 
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study conducted by AMCOM corrosion office under tasking from the Department of the Army

highlighted the impact of the corrosion problem. The corrosion problem has senior level 

visibility in the Army.

(3) The Army established a Care of Supplies in Storage (COSIS)/Corrosion 

Team at AMCOM in which the Stock Readiness staff collaborates with the Corrosion Office to 

provide COSIS/Packaging/SDR training to Army Combat Aviation Brigades (CABs). There are 

numerous reasons behind corrosion related issues that the Army is finding, and although there 

have been some improvements since the inception of the training, there are continuing areas of

concern. 

(4) Attention to details for creation of SDRs has improved since training began,

especially when there are corrosion and packaging relationships. In order to matrix the corrosion 

issues separately from the packaging issues, which will enable AMCOM's Corrosion Program 

Office to conduct a more in-depth analysis of the corrosion issue and provide their 

recommendations, we need a distinct code for corrosion related discrepancies.

(5) Corrosion is not just an AMCOM or Army problem. It is a serious problem

on a DOD wide basis and the Army estimates that it costs the taxpayers billions of dollars 

annually. We have to put a stop to corrosion, but we need a way to determine the root cause and 

identify the point(s) in the supply chain that need attention. Assigning a discrepancy code 

specifically for corrosion related issues will help sources of supply identify root causes and help 

us identify where we can focus our attention to making supply chain improvements.

c. Approved Change in Detail:

(1) For SDR and SQCR creation, add discrepancy codes:

P116 Preservation inadequate or incorrect resulting in item corrosion

P216 Packaging inadequate or incorrect resulting in item corrosion

(2) For SQCRs creation, add discrepancy code:

A6 Improper storage conditions resulting in item corrosion

d. Revisions to DLM 4000.25 Manuals:

(1) Add SDR discrepancy codes to identify item corrosion due to inadequate 

and/or incomplete packing or preservation to DLM 4000.25, Defense Logistics Management 

Standards (DLMS), Volume 2, Supply Standards and Procedures, Appendix 7.28, Supply 

Discrepancy Report Relevant Data Elements, as shown in approved change detail.

(2) Add SQCR discrepancy codes to identify corrosion due to improper storage 

conditions to DLM 4000.25, Defense Logistics Management Standards (DLMS), Volume 2, 

Supply Standards and Procedures, Appendix 7.29, Stock Readiness Relevant Data Elements, as 

shown in approved change detail.

e. Transaction Flow: No change to current process.
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f. Alternatives: None currently known.

5. REASON FOR CHANGE: The Services need metrics to track packaging/preservation 

corrosion issues via the SDR/SQCR. This will help to identify and resolve root causes. There is 

currently no way to specifically identify corrosion related discrepancies using existing 

discrepancy codes.

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: Adding the new discrepancy codes for the SDRs and SQCRs will 

enable users to run queries to identify SDRs (and after full automation, SQCRs) with corrosion 

related issues.

b. Disadvantages: None known

7. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: Codes are effective August 

1, 2017.

8. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: Currently estimated the DOD is losing $2B in 

assets to corrosion resulting from packing/preservation related discrepancies. Once new 

discrepancy codes are implemented, sources of supply will be able to determine and correct root 

causes that could potentially save millions of dollars annually and increase unit readiness across 

the board.

9. IMPACT:

a. New DLMS Data Elements: None identified.

b. Changes to DLMS Data Elements: Add discrepancy code values as shown above

for use beginning August 1, 2017.

c. Automated Information Systems (AIS): Component SDR systems must update 

their discrepancy code tables.

d. Defense Automatic Addressing System (DAAS): WebSDR must update the 

discrepancy code tables used for input and queries for use beginning August 1, 2017.

e. Non-DLM 4000.25 Series Publications: DOD Components must update internal 

guidance as appropriate.
Attachment, ADC 1260

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10. PROPOSED DLMS CHANGE (PDC) 1260 STAFFING RESPONSE/COMMENT 

RESOLUTION:

Originator Response/Comment Disposition

1. Army The Army SDR Community concurs.

Logistics Support Activity Packaging, Storage & Containerization Center 

recommends adding "item" before

corrosion in the discrepancy codes as follows:

In Paragraph 4c.(1)

P116 Preservation inadequate or incorrect resulting in item corrosion

P216 Packaging inadequate or incorrect resulting in item corrosion

In Paragraph 4c.(2)

A6 Improper storage conditions resulting in item corrosion

This is to ensure that there is an understanding that this is reported after a 

Technical inspection.

Noted.

Updated as requested.

2. Air Force Concur Noted.

3. Marine Corps Concur Noted.

4. Navy Concur Noted.